Wednesday, 28 March 2007
Blue Cross Blue Shield Of Michigan Adjusts Rates
Blue Cross Blue Shield members in Michigan will soon see an increase in their health insurance premiums. Michigan’s Office of Financial and Insurance Services approved a rate increase after the state’s largest health insurance company cited losses in their individual health insurance line.
The adjustment affects 60,000 BCBS members with individual health plans. The increase goes into effect May 1, 2007. Policyholders with group plans will not be affected.
“We sympathize with our members who purchase insurance on their own and face higher premiums as the result of rising medical costs,” said BCBS spokesperson, Helen Stojic. “But the fact is that the premiums we collect for these health-plan options are far below the cost of the medical service delivered.”
Depending on the plan, premiums will go up from 4% to 25%.
Under Michigan law, Blue Cross Blue Shield is the “insurer of last resort,” and required to accept any applicant — regardless of their health status or medical history.
“This differentiates us from for-profit insurers, who cherry-pick young and healthy people and often turn away people whose medical conditions make them too high a risk in the eye of the for-profit insurer,” Stojic said.
“The rates bring the premiums closer to the actual cost of care provided, but not all the way,” she added.
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